you. martha: good to laugh about the fiscal cliff. what else are we going to do? you can either cry or laugh. 16 trillion. great to have you back. you're allowed to have a day off once in a while though. once in a while. bill: thank you. martha: what will we do now? bill: see you tomorrow. mart we'll let "happening now" take jenna: twist and turns on the general petraeus scandal coming up for you. veteran john boehner has a big task ahead of him. can the house speaker pull the gop together and try to make a deal with the president on the fiscal cliff as jay leno was talking about. should he? should a deal be made? a fair and balanced debate is coming up. lots of talk how the united states will eventually be world's top oil producer. that is what some say. there are questions why it is taking so long. those stories and breaking

news all "happening now." jenna: well, it is a little unbelievable, but there is lot of twists and turns in this scandal we've been following so closely surrounding former cia chief and now others. hi, everybody. glad to have you with us. i'm jenna lee. rick: happy tuesday. i'm rick folbaum in for jon. controversy over the timeline of events over the petraeus investigation with members of congress wanting to know why the fbi didn't notify them and the white house until just recently when it began months ago. that investigation far from over. fbi searching the home of petraeus's alleged mistress, paula broadwell. after david petraeus resigned his post as america's top spy. the scandal is widening. the woman in yellow, jill kelly, alerting a friend of

hers that works in the fbi to threatening e-mails she says she was getting turning out to come from broadwell, part of an investigation involving another high-profile member of the military. the top u.s. commander in afghanistan, john allen. the defense secretary leon panetta says the pentagon has launched an internal investigation into thousands of quote, inappropriate communications between general allen right there on the screen and that woman in yellow, kelly. chief intelligence correspondent catherine herridge live in washington. you almost need like one of those boards to put all the pictures up, catherine. >> reporter: you do rick. beyond the issue of failing to notify congress about the fbi investigation the democratic chair of the senate intelligence committee is threatening to subpoena a report summarizing director petraeus's trip to libya when he personally looked into the fwauz gauze attack. he personally interviewed cia staff on the ground in libya including the station chief and the report may be only in unfinish draft form.

the departure was sudden and unexpected even by the director. so far virtually every known investigative thread in the case now leads back to jill kelly, a woman described as an unpaid social liaison for the military in tampa, florida. this morning it is alleged the commander of international forces in afghanistan or isaf, general john allen sent between 20 and 30,000 pages of potentially inappropriate e-mails to kelly. jill kelly alerted an fbi agent what she believed were harassing e-mails from paula broadwell, the biographer and mistress of general david petraeus. it was the investigation of kelly's complaints that ultimately forced the resignation of the general. last night fbi agents were at the home of paula broadwell where they were seeing taking bags and material from her home. lawmakers this morning questioning the timing of events unfolding at lightning pace after the

election. >> well, i think there's enough room for suspicion here and a great example is after conducting this investigation for so long why would the raid on the lady's house just happen this week? if it investigation had been going on for months. so i think the fbi has a lot of questions to answer. >> reporter: also this morning fox news has learned that the fbi agent who took the original complaint from jill kelly to the cybercrimes unit was barred participating in the investigation because alleged he sent kelly shirtless photos of himself. he is subject of a personnel investigation at the bureau, rick. rick: catherine herridge live for us in washington. thank you very much. >> reporter: you're welcome. rick: this just crossing. tommy vitter, spokesman for the national security council coming out with a statement moments ago, general allen, his nomination to be the supreme allied commander in europe, basically in charge of all nato troops, that

confirmation has been put, that nomination has been put on hold pending the outcome of the investigation into his possible involvement with all of this. jenna. jenna: for more on the fallout potential i of this scandal about the former cia chief, david petraeus, let's bring in bill mcgirth. former speechwriter for president george w. bush and. bill, in your column today, titled, sex, lies and gmail, you say there is essential question before we can examine the political fallout. what is that central question amidst all these twists and turns? >> well the central question for me is what happened in benghazi which involved the death of four americans including the first ambassador killed in the line of duty since 1979. we know it's been a mess. we know the cia was heavily involved and on the ground. we know there are contradictary stories and and general petraeus early

on in this, a day or two after the attack in a briefing reported to have said, we don't have this first-hand, that the video may have been the cause of it. we don't know his exact language for what he said. it. >> hard to see how that sustains itself and so the question is, did this personal problem that he had affect what he said? and i think the, america is still bating to hear what general petraeus thought at the time about benghazi and what he thinks today. jenna: as you hear lawmakers potentially talking about hearing from general petraeus one of the things that is said whether or not he could be called to capitol hill if not with these current hearings but ones in the future that now is not the right time but we would like to hear from him. what do you think is a reasonable expectation from when congressional lawmakers should hear from general petraeus or the public? >> right. i think that's up for them to decide. and look, it's not just general petraeus. secretary of state clinton says she takes

responsibility and seems to take off and have a hard time getting her there to answer questions. when she gave a briefing shortly after the attack, the senators were all complaining that she told them nothing. so we really don't know. and this whole mess, which, you know, the giant tar baby, the question is, did this affect what we were told? jenna: how do we find the answer to that? >> we ask. i think you ask directly and we hope that people tell the truth. jenna: let me ask about one other part of your column as we mentioned. as we introduced you were a speechwriter to president george w. bush. even when you were invited to white house to work and given certain clearance, not clearance like general petraeus. >> pretty high clearance for assistants to the president. you go through a brac ground check. jenna: you were asked questions about your marriage. what did they ask you? >> well, i think the procedure for security agencies is slightly different. i don't know how different they are. they asked some of the same questions. we had to fill out, for

example a form, that asked at end of the everything, have you ever done anything if it came out would embarass you or the president? pretty opened ended. my dad is former fbi agent that still does background checks for people in the state department. he always emphasized people get in trouble when they lie. a lot of times if they told the truth it would be embarrassing and wrong sometimes but they wouldn't lose their job. but once they lie, they get in trouble. you remember getting in trouble for lying on forms and so did henry cisneros. jenna: reason you bring that up, if you were asked before you assume the position about marriage or adulterry, this was asked of general petraeus, we don't know when the affair started, the question is whether or not he was straightforward about the information. >> this is more personal issue from him. the question is when the affair began. his friend are telling reporters now that the affair began after he went to the cia.

jenna: why are those questions relevant? >> that is relevant to him because --. jenna: why do you think questions about marriage and adulterry to leadership roles? >> i think, i'll tell you. not whether i think they're relevant. i'll tell you why they're asked. they're asked because people know relationships like this get you into all sorts of reckless situations. look at this. we have two west point people. very highly disciplined, very highly motivated, showing incredible lapses of behavior. the general with e-mails and so forth. the woman threatening another woman. that, that's, i wouldn't say that's normal but that can happen when emotions and stuff are bottled up. so they want to know, do you have any of these problems on your radar? doesn't mean you're excluded from the job but they want to know have you handled it and are you vulnerable to being compromised. jenna: good questions about leadership and who assumes leadership. >> also to make the point, i think when they asked these questions they're not trying to render a moral judgment on you. they're trying to find out

for very practical reasons, do you have anything that could lead to the kind of mess we have now which involves, let's face it, classified information. there is a reason the fbi is at mrs. broadwell's house last night. jenna: we'll con into watch this certainly throughout the day and next several days. bill great to have you with us on set. >> thank you. jenna: rick. rick: back to that story a little bit. out rage on long island, new york, where thousands of people are still without power two weeks after hurricane sandy slammed into the northeast. they're not the only ones suffering. folks in new york city usually head to coney island to line up for music park -- amusement park rides but now they're lining up just to get something to eat. jonathan hunt is there. jonathan, how is it going? >> reporter: extraordinary to see scenes like this in 20th century america. some people have just trying to get the basics of life. they're picking up canned goods over here.

over here we have well, military-style meals ready to eat. gatorade bottles, cases of water. and everything is numbered. they're allowed to take two canned goods. one gatorade. up to a case of water and then there is laundry detergent further down there as well. a lot of these people live in the project buildings behind me, rick, where they have been struggling to get by for two weeks now since hurricane sandy hit. i have to say the spirit we found among most of the people here, while they acknowledge their difficulty they're all determined to push through. listen. >> we don't have any electricity in the building. the generators is out and stuff like that. it is just kind of hard. >> we're still hanging in there. we still have no lights and no gas and no hot water but we're still holding on and still in line trying to get our rations and our water together. they're doing right by us. i can't ask for much else. >> reporter: so a lot of

people have had their homes and much of their lives destroyed, rick. but i have to say the spirit of these people certainly has not been destroyed. rick: well that's good to see. that woman was talking about no lights and no gas, no water. what are you hearing and what are people saying about the recovery efforts on the ground? >> well, generally speaking they're pretty happy that con-ed has tried to get in here, tried to do what it can. con edison, which is responsible for the power in this part of new york, says that they have restored it pretty much across the board but there are a few pockets. and as governor andrew cuomo, the democratic governor of new york said, if 99% of people have got power but you're the 1% that hasn't, it doesn't matter that they're patting themselves on the back for the 99%. we spoke to one woman today said in her situation it is not entirely con-ed's fault that they haven't yet got power. listen to this. >> the people in my building

attacked con edison. they were throwing bottles and cans and everything and con ed son. they're not coming back unless they have police protection. i think it is wrong when they did this i don't know when my lights will be put back on. they said after thanksgiving. we shouldn't have to live like this. >> reporter: you have to say it's true. in 21st america should anybody, 21st century america, should anybody really have to live like this? it is getting better, there is no doubt about that, rick, but it is painfully slow progress for a lot of people. rick: jonathan hunt live for us in coney island in brooklyn, new york. jonathan, thanks. jenna: lawmakers are back on capitol hill and the battle for the so-called fiscal cliff is about to begin. some suggest speaker boehner's biggest challenge is in his own party. more on that coming up. reports are that america could be the world's top oil producer by 2020. we told you a little bit about this yesterday.

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jenna: america is projected to be the world's top oil producer in eight years and completely energy independent in less than 20, at least according to one report. many are now asking, why not sooner? liz macdonald has the details from the fox business network. liz? >> yeah, that was a stunning reversal of what the international energy agency said a year ago, jenna. that basically saudi arabia and russia would vie for the number one spot but now it looks like it will be the u.s. although the report does warn, listen the oil and gas boom in the united states is still in its infancy but u.s. crude oil production is up 14%. now there are moves afoot to basically stop the

development of the u.s. oil and gas industry. number one, this is what the oil industry is talking about. that basically the interior department is moving to shut 1.6 million acres in the west to oil shale development. it would leave open 677,000 acres open in colorado, utah and wyoming to oil shale development and another 130,000 acres to tar sands development in utah but there will be, separate from there, there is going to be a protest at the white house scheduled for november 18th by environmentalists who are upset about u.s. oil and gas production. they're essentially saying, look the glaciers are melting. it is an issue of pollution from carbon here in the united states. the nat-gas industry would say, wait a second, natural gas is lowering carbon emissions. there is a big fight here, jenna on this front. the other issue too, there is the keystone pipeline. we're waiting on to see whether or not the state department will approve the

keystone pipeline development out of canada into the northern part of the u.s. the southern part of that pipeline is under construction. the environmental lobbying groups are saying well, that keystone pipeline, if it is developed it will undo the auto fuel efficiency standards in terms of pollution from the oil that it will basically transport. expected 900,000 barrels a day from the keystone pipeline. so this fight is now being waged in washington, d.c. on different fronts. you're also seeing the epa with emission standards and still talk after carbon tax as well, jenna. so we'll be watching this one closely. the oil and gas industry still faces some hurdles to be fully, reach the potential that it could, if the iea forecast is proves to be correct. jenna: a lot of dynamics at play. elizabeth, thank you. >> reporter: sure. rick: big decisions for republicans and democrats on capitol hill. as the clock ticks towards

the fiscal cliff will the gop come together to find a solution to the automatic spending cuts and tax increases set to kick in? we have a fair and balanced debate. historic flooding in a popular tourist destination. water reaching levels rarely seen since the 1800s. we'll tell you where coming up i always wait until the last minute.

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jenna: brand new stories coming up next hour including this one. new developments nearly by the minute in the general petraeus scandal and resignation. what will it mean whether it comes to finding out what really happened before, during and after the terrorist attack in benghazi? will the former cia director testify? those questions will be asked of senator barrasso next hour. plus picking up after the mess left behind by hurricane sandy. hundreds of people along the jersey shore coping with condemned homes and finding

few options. for those thousands of folks still without power, now they're facing plunging temperatures. janice dean will tell us who needs to bundle up big-time. rick: "happening now", capitol hill welcoming close to 80 new house members today. they're in town for orientation. they don't get sworn in until next year. current lawmakers spend the next seven weeks trying to avoid a deal to impact spending crisis that could trigger another recession. this as house speaker john boehner hints he may be willing to compromise on the president on the gop's hard anti-tax position. would he have the backing of his party? would democrats go along? alexis mcgill johnson the executive director for american values institute. terry holt, former bush-cheney national spokesman and former senior advisor to the rnc. good to see both of you. terry, compromise seemed like a dirty word in the outgoing congress a lot of

times. now that we're post-election, we have the lame duck, what do you think? does john boehner have the backing of his conference? >> boehner comes in probably stronger than he did in two years ago when we were facing off with president obama over stimulus and so forth. he won a lot of those battles. this year i think it is even more, republicans come in even more united resolve against increases in tax rates. we have reason to be optimistic. president obama said on friday, gave a presser, and didn't mention his tax rates promise. so we feel like if we can be united and strong together, we can go into an effort to find common ground without this, this evil empire of new rates, new tax increased rates and for that i think that boehner holds a pretty strong hand. rick: alexis, how willing do you think democrats will be to cut a deal? i wonder if there is danger for democrats who might feel

a bit emboldened after last tuesday they could overplay their hand in a way? >> i don't think so at all. i think democrats are feeling very strong about this. i'm not sure they would characterize it quite as the evil empire as terry does. >> if you want to wreck an economy. you could raise tax rates. that is pretty evil. >> i don't think that happened under reagan or under bill clinton. marginal tax rate increase that democrats are looking for will do nothing more than help support the majority of middle class americans that not only support increases on, increase in tax rates on people who are earning over $250,000 but also support not cutting things like social security and medicare and medicaid. and so i think the democrats come in not feeling very, very, rather feeling very strong around this idea that they can create the right compromise and right balance to move this country forward. rick: terry, bill kristol, the prominent conservative,

spent last couple days on this network talking about how republicans may want to go along with the president's plan to raise tax rates on those earners above 250,000. take a listen. i'll get your response. this is last night an "special report". >> the first takes rates expire on december 31st. rates are going up for everyone if nothing happens. if you think republicans can win a showdown preserving all the current tax rates against a president who is reelected gained seats in the senate and house just raising rates on billionaires, well good luck. i prefer this as policy outcome. i don't think it is winnable. i think in the end republicans will cave. rick: terri, what do you think? >> i respect mr. kristol obviously but in this scenario with entitlements on the table and with wholesale tax reform being a bipartisan priority, we need to get this tax, this tax structure in our country back to more competitive, back to rewarding people who are innovative and hard-working. the main fact here is that

both parties, just a short time ago agreed to certain entitlement reforms as part of the grand bargain that we all heard so much about in the last congress. if we can go back to some of those elements of that deal, then we can find common ground, we can avoid a big new tax increase. you know last week the stock market took a beating because everybody thought that barack obama was going to get his way on tax rates. i think we've seen the writing on the wall on that. there are so many more things we can do for this country to make the economy grow better. en. rick: i'm sorry, i want to get your response to what terry was saying about entitlements. are they on the table? what else do democrats come to the bargaining table ready to negotiate on? >> i think they're willing to negotiate to have the increase go up to 500 or a million as opposed 250 which many on the right proposed that might hurt small business. that under very serious consideration. i would disagree with terry what isp happening on

wall street. wall street is a little concerned with the house still, basically the lineup the same in terms of the house being republican and senate and white house remaining democrat we'll not focus on working together. more than anything i think what we're seeing americans don't want any obstructionism. they want deal-making and they want compromise. they can't have it on the backs of middle class americans. rick: last word for now, alexis mcgill johnson, terry holt, thanks. >> thanks, rick. jenna: a big meeting at the white house getting underway. it is about this so-called fiscal cliff. who the president is talking to and what he is saying about reducing the debt and tax hikes as well. that story is coming up. plus the investigation that led to the resignation of a cia chief. why there could be major legal fallout over what the fbi did. we'll go in depth with judge napolitano next.

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rick: we're back. new legal concerns over the fbi investigation which led to the resignation of the cia chief general david petraeus. petraeus stepping down last week after admitting he had an extramarital affair with his biographer paula broadwell. the fbi learning about the relationship after reading private e-mails between petraeus and broadwell and that has our next guest troubled. judge andrew napolitano is fox news senior judicial analyst. author of the book, theodore and woodrow. always good to pick your brain.

should we even know about this, first of all? >> in my opinion we should not know about it. it you mean the communications between mrs. broadwell and general petraeus. these did not implicate criminal activity. these did not implicate national security. these were not a threat to david petraeus the person or dade pest petraeus the head of the central intelligence agency. those are not my words. those are the words of fbi. how did you get the right to listen to them? did you have a search warn and if you did, what did you tell the judge to induce the judge to sign the search warrant? why did you feel this publicly to dislodge this otherwise superb public service from a mission he recently dedicated his career. rick: so the fbi gets involved with this. they're brought in. they find these e-mails. isn't there a principle within the fbi where someone's invasion of privacy during the course of an investigation should be minimized where as soon as

agents find information of a personal matter not related to what they're investigating, they should stop looking at it? >> or as soon as they conclude there is no crime here. there is no federal crime here. this doesn't implicate the federal bureau of investigation will stop it. there is also the principle no matter who he was, four-star general, director of the cia, and no matter what he did, cheated on his wife, he is entitled to the same constitutional protection as the rest of us. so the fbi can't go on a fishing expedition. they can't look for jenna lee's e-mails to me anymore than they want to look at general petraeus's e-mails to mrs. broadwell without establishing the probability of a criminal act and persuading a neutral federal judge that the there was probably evidence of criminal activity here. short of that, there is no search warrant. and any viewing of the e-mails without a search warrant is a crime by them. now, they could write their own search warrant under the patriot act but in order to do they have to satisfy

themselves that this was an investigation into terrorism. that's obviously not the case either. i think they ran amok with general petraeus's life and with his liberties and for that he is out of a job and it's wrong. rick: i've been following your career for many years and i know that you are a champion of individual liberties, individual rights but when someone signs up for the job of cia director and that person is entrusted with the most sensitive secrets that we have in our country pertaining to national security, does that person not willingly, sort of say, okay, i understand and do away with some of those personal liberties? >> great argument, rick. in other words as shakespeare would have said, purer than caesar's wife. meaning that so pure no one could even make an allegation against you. the director of cia can't run for office. he can't support political candidates. he can't appear in public and make political statements. so he does give up certain things. in his case he is the country's chief spy.

he ought to have comported his behavior so that if someone was spying on him, he would be as pure as caesar's wife. rick: does he have any recourse here if we learn in the course of this investigation that the fbi did something wrong? >> yes. rick: general petraeus have any kind of legal recourse? >> yes, yes, there are numerous federal statutes that protect people from overreaching by the government. look if this thing was started because some fbi agent who took his shirt off and e-mailed a picture of himself to mrs. kelly i think her name is because he was her friend and wanted to do her a favor, reason because the federal bureau of investigation really thought there was a crime or a national security implication here, if this was done, started as a vendetta and got out of control the general has a serious civil rights case against the fbi. rick: no shortage of crazy behavior in this case. all around. all around. >> absolutely. no shortage of interesting

things for us to talk about. rick: judge napolitano, good to see you as always. >> jenna, i was just using you and me as a hypothetical. as a wild, crazy nonsensical, nongrounded in fact hypothetical. jenna: i will say for the viewers the only thing that the judge sends me in is quotes of shakespeare. that's all. i'll just leave it there, people. classics only. judge, thank you very much for that confession. right now at the white house the president is meeting with labor leaders and progressive groups. all part of a push to pressure congress to reduce the debt where the president proposed during his campaign. that proposal included raising taxes on wealthy and protecting changes to medicare and other entitlements as well. senior white house foreign affairs correspondent wendell goler is live with more on this. wendell? >> reporter: he says his re-election that majority of the public agrees with the balanced approach to reducing the deficit. republicans disagree. house republicans say the fact they retained the

majority shows there is no mandate for a tax increase. afl-cio richard trumka who was here for the meeting today, says big labor which campaigned hard for mr. obama will stay in campaign mode. lobby lawmakers on capitol hill to fight benefit cuts in entitlement programs as part of the deal to avoid the so-called fiscal cliff. >> activists will send a message to our elected leaders that it's time to say no to benefit cuts for social security, medicare and medicaid. and yes to fair taxes. on the wealthiest 2%. you see it's time to rebuild america's middle class. not tear it down. >> reporter: the president had been willing to raise the medicare eligibility age and increase premiums in the deficit reduction deal that collapsed in july last year. he withdrew the offer and in the plan released last fall. republicans say exit polls suggesting seniors favored mitt romney by 56-44% show

they didn't reject republican ideas on changing medicare. today's meeting just the first in a series before mr. obama meets with congressional leaders on friday. he will meet with business leaders and civic leaders tomorrow and. as part of a different strategy that he used in last year's deficit reduction talks that failed when he and leaders of congress holed up here at the white house and spent late nights trying to hammer out an agreement. this time the president will use public pressure and public appearances in addition to white house arm-twisting to make it clear that the voters agreed with his plan to end bush administration tax cuts for upper income people. jenna? jenna: private arm-twisting, public statements. we'll see if the strategy works this time. wendell, thank you. rick: coming up, we talked about how u.s. shale, that is kind of sedimentary rock, may hold the key to our country's energy independence. now, find out the region of the country that could see a

major boom because of it. also the iran nuclear standoff on the agenda at the white house. the president's national security advisor meeting with his israeli counterpart. we'll go in depth coming up next. this is how mommy learned... ...and now... you! [ giggles ] ♪ the one and only, cheerios

rick: a lot of military activity in the middle east and it may push israel to the brink of war in gaza where militants fired more than 100 rockets in recent days, sparking retaliatory airstrikes from israel. this comes amid fears that israel, by far our closest ally in the middle east could be drawn into syria's civil war. now that its tanks struck a syrian artillery launcher after a stray mortar shell flew into the golan heights. the fighting from syria reaching turkey for the second straight day. leland vittert is live in jerusalem with the latest. leland? >> reporter: rick, right now the big concern in terms of the civil war is just how

close the syrians civil war is getting to its borders, namely with turkey and also here with israel. the airstrikes we have watched over the past couple of days along the turkish border were shots from turkey, meaning that is how close the planes were and the turks for their part have promised to shoot down any syrian air force jet that ends up inside turkey airspace. that of course could have a whole cascading range of effects going down. the air force for the syrian government is really the trump card as they have been able to act with impunity. although rebels have gotten better organized the past couple weeks they're nowhere near the level, france, britain or the united states will consider sending over some type of anti-aircraft missiles or other types of heavy weapons to allow them to try to turn the tide in their war against president bashar assad. the other story we're watching very closely here that could easily turn into a war is what is going on down in gaza. the defense minister there has said this latest round

of violence is quote, not over yet. although there has been a little bit of a lull in the rockets going being back and forth between gaza and southern israel. this started over the weekend when gaza militants attacked an army jeep that was there patrolling the border. after that the israelis responded with artillery and airstrikes killing a number of palestinians. since then we've had almost 160 rockets launched by gaza into israel and israelis responding. the patience among the israeli defense establishment and people living in range of all those rockets is wearing very thin. the current conversation here in israel is not if, but when israel will launch a major offensive into the gaza strip. whether that will be something like we saw during the 2008 operation. that was a 30-day ground incursion or something more like limited airstrikes is yet to be determined. rick, back to you. rick: leland vittert, live

in jerusalem, thank you. jenna: for more on this i'm joined by ambassador dan gillerman, former israeli ambassador to the u.n. and fox news contributor coming to us from tel aviv. you heard what leland reported about patience wearing thin. can the ambassador hear me all all right? >> yes, i can hear you very well. jenna: hi, ambassador -- >> i can hear you loud and clear. can you hear me? jenna: sometimes the delay is a little tough on live television with tel aviv. always great to have you as our guest. leland is saying that patience is running thin with israel. there is engagement with gaza, engagement with syria. how close to you think israel is to being dragged into a more regional conflict? >> well, as you said, patience is running out. israel every day i think feels more and more like a villa in the jungle. we have hundreds of rockets being launched at schools and kindergartens and homes

in the south. we have assad butchering over 30,000 civilians and slaughtering his own people in the north and now launching bombs at israel and bombing israeli territory and there's only that much israel will take. israel is being very cautious. it is not jumping to anything. it is not happy to heat up the region are to have it flare up but there really is only that much we would take. i think already we're taking more and showing more patience than any other country in the world would under these circumstances. i don't think the united states would stand for one missile in one school in one city in one state. so patience is running out and israel will have to retaliate and when it does, it will be strong, it will be swift and it will be very, very, very effective. jenna: there was a meeting at the white house between

our national security advisor and his israeli counterpart just yesterday about the way forward. syria, iran, what do you think is the most important thing that our two countries have to achieve over the next six to nine months, whether it is syria, whether it is gaza, whether it is iran? >> well, there is no doubt that the most urgent and the most important issue is iran. the president has said time and time again and emphatically that the united states would not accept a nuclear iran. israel will never accept a nuclear iran and both the united states and israel together must make sure that iran does not become nuclear. so there are sanctions in place. they are hurting. but the clock is ticking and the clock is ticking much faster than the diplomatic sanctions are working. and therefore i believe that we only have a few months before we have to take action.

and if we find that the iranians did not stop their quest for nuclear weapons, while threatening to wipe israel off the face of the map and destroy civilization as we know it, i believe the united states, as the leader of the free world, and the international community should see to it, even if it is by military means, that iran stops. if it doesn't, i assure you we will because we will not wake up one day to a nuclear iran just as the world woke up one day after saying it is unacceptable to a nuclear pakistan or a nuclear north korea. iran is far more dangerous than north korea because north korea acquired nuclear weapons out of desperation while iran is seeking them out of aspiration. aspiration to rule the muslim world, to destroy civilization as we know it. what we're seeing in syria is just a preview of what the world would look like if iran had a nuclear weapon. syria is a proxy of iran as

is hezbollah, as is hamas and we must not allow that extreme fundamentalists regime to acquire nuclear weapons. jenna: a lot of priorities ahead of us all. great to have you on the program. we look forward to having you back as always and we'll be right back with more "happening now"

rick: fox weather alert now. historic flooding in italy where the death toll is rising as waters reached levels rarely seen since the 1800s. patti ann browne with breaking details from the breaking news desk. >> reporter: hi, rick. rains hammered northern an central italy for days leading to devastating flooding. in tuscany, nine inches of rain fell for hours. caused rivers to flood and causing land stlids that swept away vineyards and olive groves. four people killed. among them a woman and two

men whose car fell off a collapsed bridge today. 200 people were evacuated from their homes. dozens of people took refuge on their roofs as rivers burst their banks. others were rescued by helicopter as you can see from farms that are underwater. thousands of acres of farmland are submerged as well as many stores and homes. flooding washed out secondary roads isolating several towns the railroad also has been is disrupted. army troops were asked to assist in the emergency. rain left behind record floodwaters in venice. tourists were wading through waist deepwater. others swimming through st. mark's square, some in bathing suits. palaces filled with water. 70% of the lagoon city was flooded. high water reached five feet. that is the 6th highest level in venice since 1872. this is the fourth time

since 2000 that venice has been hit by record high water. that is prompting local officials to blame global climate change. a barrier to protect the city from repeated winter flooding is planned for decades. it is not due to be finished until 2015. rick? rick: patti ann browne with breaking new, thanks. jenna: this is something you don't want to stumble across. custom officials in thailand seizing a truck filled with deadly cope as. they were smuggled in thailand and sold in another country for use as traditional medicine o food. how about that, ricka little cobra for lunch? rick: no thank you. jea: cobra trading is illegal in thailand in case you're wondering. they were not surprised to find the shipment because they were tracking smugglers for a year. our job is so safe compared to that. rick: disturbing new details about an affiliate of the pharmacy that's been in the news lately linked to the deadly meningitis outbreak that killed 32 people across

the country. what federal investigators found at the sister company that may have put more patients at risk. plus a new twist in the sex scandal surrounding david petraeus. how the top u.s. commander in afghanistan is now involved and allegations that could put his career in jeopardy. when we come right back.

jenna: brand-new stories this hour. the pentagon confirming general john allen now under investigation for alleged misconduct. how this latest bombshell could be connected to the general petraeus scandal. we'll tell but that. despite petraeus' abrupt resignation the search for answers in the killing of four americans in libya intensifies. they are pushing for the cia chief to testify about what he knows. fallout in the wake of super storm sandy. lawsuits and fists flying.

the four-star general leading the war in afghanistan dragged into the scandal that forced america's top spy chief to resign. welcome to the second hour of "happening now," lots of news to get to. i'm jenna lee. rick: i'm rick folbaum. jon allen is under investigation over emails he sent to a woman. the pentagon taking over the investigation now after the fbi uncovers potentially inappropriate communication between general allen and a woman named jill kelley. kelley is the woman who drug erred the investigation of former cia director david petraeus after she received email from the woman having an affair with petraeus. jennifer griffin is live at the pentagon with more. jennifer, what do we know about jill kelley? >> reporter: what we know is that jill kelley was a wealthy, tampa, florida-based socialite who used to host a lot of parties for the top brass at

sitcop headquarters at mcdill air force base in tampa, florida. she used to cultivate friendships with the commanders and their waoeufrs. she use wifes. allen was general pet's deputy when both were based there together and that's where both met kelley. paula broadwell's father the woman accused of having a sexual relationship with david petraeus meanwhile has told a british newspaper that there is more than meets the eye to this and that his daughter's story has not yet been told, rick. rick: we'll wait as more information becomes available. as far as general allen for a second, because he is the new name that a lot of people are hearing about today as it relates to this scandal, does anybody think that the general has done anything wrong, that his career could be in jeopardy? >> reporter: well they certainly think he may have done something wrong, that's why the dod inspector general is

investigating him. the fbi came to the inspector general with about 20 to 30,000 pages of emails, inappropriate emails, they say that may suggest a inappropriate relationship with jill kelley. they are investigating that. but we're told from one senior u.s. official says that the emails may have been flirtatious, but other officials suggest that it may not be the sexual relationship that is being investigated, it may be some other form of inappropriate relationship of a nonsexual nature. officials told th "the washington post" that there were not 20 to 30,000 emails sent but that it was a few hundred emails exchanged, including long email chains that once printed out became 20 to 30,000 pages long, and that that led to the large page count. the white house and pentagon, meanwhile have asked the senate to move swiftly on the confirmation of marine general

joe d u.n. ford as the next commander in afghanistan. that hearing is scheduled for thursday. we have received a statement from tommy vitter, quote at the request of the secretary of defense the president has put on hold his nomination of general allen as the supreme allied commander of europe spending the investigation of general allen's conduct by the department of defense ig. the president remains focused on fully supporting our extraordinary tropics and coalition partners in afghanistan, who general allen continues to lead as he has so ab plea done for over a year. he was supposed to give his recommendations for troop withdrawals. there of 68,000 troops in afghanistan. we indian understand that now he will be preoccupied with this investigation and that may affect discussions about troop withdrawals and timelines, very

important decisions to be made by the president and secretary of defense. just a second i think we are getting breaking news. rick: jennifer working with her producer there. what have you got? >> reporter: we understand, this just in that a senior u.s. defense official does tell us that the emails with jill kelley, between general allen and jill kelley were fir day shuflirtatious in nature but general allen is contending the relationship was not of a sexual nature. rick: thanks very much. jennifer griffin and her team at the pentagon. thank you very much. jenna: breaking news as it happens. joining us now, john barrasso. he will attend a committee meeting about the pentagon attack later this afternoon. nice to have you back on the program. >> reporter: thank you, jenna. jenna: what should you know later this afternoon that you

don't already know now? >> reporter: this has been called in a bipartisan way so republicans and democrats working together. we're going to get briefed today by the fbi, the cia, the department of defense, as well as the department of state. i think that this is something that could have been prevented, the murder, the death, the ter terrorist attack that affected four american heros. we are starting at the beginning as to how is it that these folks on the ground asked for additional help in march, in april there was an attack, in june there was an attack. in july they asked for additional help, again denied and their whole security team got pulled out in august, and then come 9/11, and this assault occurs, a terrible tragedy, we want to start there. we also want to find out what happened that day, the timelines don't match up. and then how information came out afterwards. the misleading representation by the u.n. ambassador when she went on five sunday shows, we want to know what the president

also knew, because he said the minute he found out about this he gave the directive to take -- make sure that our people in harm's way were protected. who did he give that directive to and what was done? jenna: a lot of questions there. you were talking about some of the misleading information that was given post this news breaking about the benghazi terror attack. general petraeus had been criticized for giving this leading information to some lawmakers who in their opinion felt that he was too wedded to this idea of a video motivating this attack. you say you believe that general petraeus should testify at some point. what is a reasonable expectation, in your mind, about when you should hear from general petraeus? >> today's briefing is the first of a number of tkraoefgs there is going to be. briefings there are going to be. i would like to hear from him in the next week or so. there is so much to learn. he had just got even back from a

trip over there. the american people have a right to know. we have ambassadors all around the world and want to make sure that they are protected and we have the kind of military protection for them if they need that too protect them against terrorist attacks. i think general petraeus could add significantly to our understanding. he was the man in charge at the time. we need to hear from him. jenna: we'll see if the timeline of a week or so comes to fruition. you mentioned this is a bipartisan effort. this committee you're on is about evenly divided between republicans and democrats. this has been pegged, the benghazi as a republican attack or investigation. what is your sense about where the democrats on the committee stand about what answers they really want to know, and are they matching your passion and the passion of other republican toss get answers? >> i think now the chairman of the intelligence committee dianne feinstein has come out very actively saying we need more information. but from the beginning after that first briefing we had just a week and a half after the

terrorist attack republicans really were leading the way on this. i felt there was a cover up going on because they were so resistant and reluctant to give information, and the information that came out seemed to be contradictory and misleading. so i continue to want to get to the come of this. more important than me are the american people need to know what happened, they need to know what happened, they deserve the truth. jenna: do you think you have partisanship on this committee to get those answers. >> i do now. now that the election is over and people are focused where the focus should have been from the beginning, on the terrorist attack, on those who were killed and lost their lives and how it could have been prevented i think we have much more by in now from both sides of the the aisle. jenna: senator kerry the ha chair of the foreign relations committee, he pushed to have this meeting. he is a democrat, high ranking. there are numerous reports that he potentially take the role of secretary of state. there are new reports that potentially he could be the next

secretary of defense. your thoughts on that, senator barrasso, would you support that? >> i think for the secretary of state position john kerry would like lee be easily confirmed in the senate. though are mentioning susan rice as somebody for that position. she has been disqualified and disqualified herself by the statements shy made five days after the attack. you need somebody with sound judgment willing to ask tough questions and to all of america this did not seem to be a spontaneous demonstration about a video. it seemed to be a terrorist attack and that is exactly what it turned out to be. jenna: would you support senator kerry as the next defense secretary? >> let's see who the president nominates and we'll go forward from there. i believe senator kerr rewould be confirmed by the senate. jenna: we look forward to hearing from you. i know this is a closed briefing but an important start to a series of hearings over the next several weeks. nice to have you back with us. we look forward to speaking with

you again. >> thank you, jenna. rick: gasoline rationing coming to an end in the garden state. governor chris christie in new jersey making that announcement as fema approved $127 million to help families across new jersey rebuild their lives. molly line is live in hard hit sayerville, new jersey with more. hi, molly. >> reporter: there are places all across new jersey and new york, little pockets that look like the storm happened two days ago and not two weeks ago. this is webber afternoon in sayerville, a working class community of about more than 40,000 people. this is definitely a home that got completely flooded. the homeowners have been here for more than 20 years. he says this is the first time it has come into the house, on to the first floor and it absolutely tore things apart. the tphaoefr bthe nearby river came up and through. neighbors told us about pumps that have been installed. essentially this is completely emptied out, windows are broken and all the contents of this home are now in the backyard

piled up. they are slowly working through it hoping to salvage what they can. this is a story playing out all over the state and also in the neighboring state as well. this is manual lucas the homeowner. you know, what are you dealing with right now? how far have you come? >> i. >> i contacted fema and they made the claim number and they going to call us back. i don't know when or what even they decide. i contact my insurance, the homeowner insurance, they told me they will pay nothing, they no cover nothing. i have a flood insurance for that since 1992 i put flood insurance in the house because a flood i lost a lot of stuff. so now i gotten shaourpbs, yo

got gotte got got insurance and they come saturday. jenna saturday. >> reporter: it's all about the waiting now. the storm came through and left. there is so much damage and work to be done. people are waiting to hear exactly how much money they'll be getting from fema and their insurance companies rick. rick: good thing he has to flood insurance because homeowners does not kick in if your damage is due to a flood. in a lot of areas the recovery from super storm sandy looks like it's just beginning. two weeks after the storm we'll take a look at the fallout for areas that are still waiting for the power to come back on. and what is happening inside the storm shelters, the fox news medical a team will go inside. jenna: the founder of a security software you could have on your computer now on the run from police. who are investigating his neighbor's murder? we have much more in a very bizarre story for.

a day full of bizarre stories. new fallout from the petraeus scandal that now involves john allen. what it means for the war in afghanistan, and breaking news at this very hour coming up. people have doubts about taking aspirin for pain. but they haven't experienced extra strength bayer advanced aspirin. in fact, in a recent survey, 95% of people who tried it agreed that it relieved their headache fast. visit fastreliefchallenge.com today for a special trial offer.

jenna: the via sex stand cal is sending shock waves through the corridors of washington and elsewhere, right? they are being felt in afghanistan, president obama losing his cia director and wondering about general john allen. we have the author of "little america, the war within the war for afghanistan." nice to have you back on the program. you say you've just heard it from general allen's camp, what are some of the news that you can report about general allen, and all of this news about him potentially being involved in a scandal himself?

>> yeah, jenna, late breaking developments here. we heard overnight, of course, that the pentagon was saying that there were 20 to 30,000 pages of documents of emails supposedly exchanged between general john allen, the top commander in afghanistan and jill kelley, this woman at the heart of the petraeus-broadwell scandal. a senior u.s. official who is close to general allen has just told me that in fact it wasn't 20 to 30,000 separate emails, there were hundreds of messages, but really not the big number that is being bandied out there and said that most of these were similarly innocuous messages, in many cases messages sent by miss kelley up to general allen on a variety of things, items in the news and so forth. and this official noted that general allen, a southern gentleman who is sort of an unfailing polite guy responded to all these.

he would sometimes use words like sweetheart but met in a platonic way, not to connote any inappropriate relationship and certainly this official emphasized to me repeatedly that general allen did not have an affair with jill kelley. jenna: there are so many different nuances in all of these different relationships. the last time you were on the program we were talking about afghanistan, and it's worth noting that we are still at war in afghanistan, and general allen is the commander. what do you think this means for the war effort? what is the implications of general allen being investigated now? >> well, i mean, this between petraeus and allen petraeus was leading the war essentially in pakistan. general allen leading a war where we have 68,000 men and women in uniform serving. presidential even was to produce his assessment with regard to troop drawdowns next year to the assessment team.

what i've heard from people here in washington close to all this is that there is not going to be a delay on that, but certainly it adds a whole other layer of complication and distraction to an important set of discussions that need to take place with regard to the future of this war effort. jenna: certainly a bigger picture to take a look at as again we remember we are at war while all of this is happening. great to have you on the program. we'll continue to look out for your reporting on "the washington post" and look forward to having you back as well. thank you very much. >> good to talk to you jenna. rick: the washington press core probably thought things would calm down after election day. we'll take a little bit of a break. jenna: not so much. rick: when we go back an american software mogul on the run from a murder investigation speaks out saying the police will kill him if they find him. a live report in another strange case in the news today. how does this sound, u.s. energy self-sufficient by the year 2035. top energy experts say we can do it, one state is leading the

way. we'll tell you which one in a live report coming up next. atel. but because of business people like you, things are beginning to get rolling. and regions is here to help. making it easier with the expertise and service to keep those wheels turning. from business loans to cash management, we want to be your partner moving forward. so switch to regions. and let's get going. together.

jenna: right now a u.s. software mogul is at the the center of a south america murder case. you might recognize john macafee. police want to question him in the death of his neighbor. >> reporter: this bizarre story got stranger. wire.com said it spoke to macafee after the murder and he said he was on his property hiding in a hole in the sand with a cardboard box in his head. he says he's on the run not because he's a killer, he says police want to kill him. meanwhile police say they've arrested someone else who may be connected to the case but still want to talk to this 67-year-old

programmer who invented his antivirus computer software in the late 80s and sold the business for a hundred million dollars. a company spokesperson tells fox there will be no comment because the man is no longer associated with the company that bears his name. he bought property in belize where he became heavily involved in drugs, prostitution and violence, scaring neighbors by carrying a gun on the beach. sunday his next door neighbor, gregory fall, a 52-year-old builder from florida was discovered by a housekeeper in a pool of blood with a gunshot wound in his head. the two men had reportedly been at odds for months. earlier this year macafee accused the man of killing his dogs. he said i thought maybe they were coming for me, they mistook him for me. they got the wrong house. he's dead, they killed him, it

spooked me out. he told wired he's in hiding in belize, says he's not pair annoyed. the police say they have no vendetta against the millionaire but want to question him about false murder. >> we reported earlier on the energy forecast saying that the u.s. could be energy self-sufficient by the year 2035. now we turn to how one region of the country could go along way in helping us meet that goal. alicia acuna is live with that information. >> reporter: we are talking about north dakota which is second second. the balkan covers 25 square miles of north dakota, montana and parts of can today. it was discovered in the 1950s. ron n erbg ss, president of the

until says only recently have they found where it is most productive. >> other people are searching for it across the world. >> this is the heart of balkan country. >> the oil companies alone are spending about $2 billion a month on their investment to drill the wells out here. >> it means domestic energy, forever barrel we produce there we need one less barrel from some unfriendly company. >> the profit? an estimated $1.6 billion budget surplus from tax revenues. lin helms says it is booming because there is not a lot of federal land. north dakota is business friendly. >> we have a very rigorous process that you have to go through in north dakota if you're going to impose rules or regulations on the private industry. >> insiders say the biggest

threat to that future however is a major drop in oil prices, arrest aor an increase in regulations. rick: thanks so much. jenna: on the east coast tens of thousands of folks are entering a third week with no power. is it time for the lawyers to get involved? can a lawsuit really make a difference now, and in the future for other power outages. lis wiehl takes up the case on that. a top ceo meeting at the white house tomorrow, he wants to talk about the fiscal cliff. why these ceo's want to talk a little bit about healthcare, next. [ male announcer ] are you considering a new medicare plan?

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call now. ♪ jenna: welcome back, everyone. "happening now" some efforts to avoid the so-called fiscal cliff. the president talking to labor leaders today. he'll welcome business leaders to the white house tomorrow, part of his push to win support for tax hikes on the wealthy. these corporate leaders might want to add another thing to the agenda. doug mcelway is reporting live. >> obamacare is now the law of the land and dozens of other laws and regulations are set to be implemented. businesses are gearing up for what it all means. obamacare alone is so complex that many businesses are having to hire outside experts to figure it out. scores of ceo's gathering in washington today on the eve of a meeting with president obama. many restaurant owners concerned about the nitty-gritty of obamacare which will require

restaurants to display caloric counts. the hidden unknowns can cost up to thousands of dollars. other veo's have concluded that the expense of obamacare is huge. >> we've calculated it will be some millions of dollars across our system, some millions, what does that say? that says we won't build more restaurants or hire more people, exactly the opposite affect. >> i did a town hall conference call the day after the election. we had nearly 1800 members on the call and 58% said that they were inclined not to grow their business moving forward after the election. 28% said they had no plans to change their plans in 2013. and 18% said they would likely move forward and try to grow their business in some form or capacity. >> reporter: adding to the uncertainty sequestration. boeing, for example, has begun a major restructuring in recent days, one they claim is due to cuts in defense expenditures. it adds quote our concerns

oversee questions tracing today after the election are the same ones we had before the election, we don't want it to happen. another burden the regulatory environment of a second obama term. in the past 90 days the obama administration has posted 6,125 regulations and notices on its regulations.gov website, an average of 68 a day, jenna. jenna: wow, doug mcelway live from d.c. thank you. rick: frustration turning to violence after weeks without power on long island, new york. an electrical worker is now in the hospital after getting sucker punched by an angry long island resident. john apple white came up from florida to help out with the recovery efforts. he had been working 16-hour days when he was hit. now he's recovering from a broken jaw and cracked cheekbone. >> he gave me no signs of anything aggressive. he was in a nice vehicle, dressed fairly nice from what i could tell. as soon as i got within an arm's

reach of him he decked me. i'm not going to let it get me down. i even skroeu what i do enjoy what i do. i'm not going to let one person spoil this. >> others are taking utility companies to court following a class action lawsuit against the long island power authority. do they have a case? lis wiehl is a fox news legal analyst. good to see you. >> good to be here. rick: i understand people are frustrated but hitting somebody who is trying to help you that is another story all together. he probably has a lawsuit if he pwapbt wants to on his hands. let's talk about lipa. >> the summons and complaint was just filed yesterday. i got it two hours ago, i read it, i like this. rick. i think they have a solid claim. what they are saying in this group action, and i like a class action because if you try to sue a major organization like that, a utility or any other company by yourself, bit by bit by bit

you'll be shoved to the side. this lawyer is putting in a class action and says look, you knew about sandy's coming, you did ratively nothing, you didn't even have poles when everything went down. you were using an antiquated system. you knew or should have known not just for sandy but for decades or years before. you could have done more, you didn't. he's claiming there was an implied contract between the utility and the customers. and i like that argument. the implied contract being you supply us with the utilities, we'll pay you the money. and do your due diligence. now to be fair you can tell where i come out on this one, but to be fair i'm a lawyer, i can talk out of both sides of my mouth, to be fair the other side, the utility will say, huge act of god, you know, storm of the century. we could not have anticipated the furniture or of sandy. how could we have known that we would need all this? you can't blame us. we are so sorry about your power. we are sorry you didn't inform you about your power.

they will say that and they'll say they've got limited immunity or in tkepl in a tee. rick: because of an act of god. >> right. rick: doesn't a utility company though that serves the public have a legal responsibility to keep up with technology, to keep up with equipment, to get the latest, to make sure that there itheir infrastructure is in place to serve the country. >> that's why i like it's a class action lawsuit instead of independent complaints. those happen as we know all the time. but a class action like this will get major media attention, will get us all talking about it, and if they prevail i'm hoping that other utility companies around the country will say, you know, we probably don't want to have the same thing happen to us as what happened on long island, let's make sure we do something right. rick: class action lawsuits play an important role in the legal system. don't they usually result in a big payday for the lawyers and not necessarily for the people who sign onto it? >> it's a two-step process. yes they've got to be certified

as a class action. they have to make sure everybody is in the same class. i don't think there is a problem there you have everybody on long island suffering from the same thing. you're right, will the lawyer win 30, 40%, yes, okay, that is not great, but let me explain a class action. but for this lawyer coming in and taking this lawsuit these people have more things to deal with, they've lost their homes, they are trying to file insurance claims, doing all this stuff, trying to get power back, they don't have time to go out and hire a lawyer. the lawyer will come in get all the experts and of course the lawyer will make tons of money but otherwise they probably wouldn't have filed the suit to begin with. rick: fox news legal analyst lis wiehl who likes the class lawsuit. jenna: those trying to recover from the storm have falling temperatures to deal with again. how cold will it get? janice dean is live in the fox news extreme weather center wearing a turtle tpheb, is that anneck, is that any

indication. >> yes, i forgot my hat. it was deceiving yesterday, we had temperatures well into the 70s in some cases across the northeast. it was very spring-like. burlington vermont. 70 testing. a record in parts of vermont, maine. but temperatures are falling and that is courtesy of a very powerful cold front moving across the eastern seaboard. it dropped temperatures 20 degrees in some areas over the last 24 hours. look at rally, 26 dig difference from what we are talking about yesterday. we will be dealing with potential for showers and snow. i want to show you tonight's lows in the sandy affected region. low 30s, that will be the story for the next several days. people without power need their neighbors and family to help them out. i want to show you the cold front, jenna as we move over the next several hours. it's going to continue to press

eastward bringing some showers and some snow as we move up towards the new england area, that's where we're seeing the little bit of snow and rain, just nuisance rain, but i just want to give you a head's up, that we are watching some of the computer models, and we might have a storm just ahead of thanksgiving for all of these vulnerable areas again next week. so, i know it's bad news, but i just want to make sure people are aware in advance, we are watching a potential coastal event nor'easter possibly for early next week, before thanksgiving. jenna: a heads up is always appreciated. >> every time you see me it's bad news. i want to come on when it's good news. jenna: not true at all. summer will be here soon enough -- no, maybe six, seven months. i was looking for the brighter side somewhere out there. >> i wish i had one at this point but you know -- jenna: it's good to get an early warning. >> early warning, i'm not saying it's going to happen i want to make folks aware if you live across the northeast we will be tracking a possible storm and

we'll make sure you know all the details as the days progress. jenna: okay, jd. isn't she lovely, even when delivering bad news. janice dean with a smile on her face. some new answers in the deadly outbreak of meningitis. a live report on the fda's investigation. a mysterious river of mud covering a whole neighborhood. now the folks who live there want to know what caused this awful mess. we'll tell you about it coming up. [ male announcer ] when was the last time something made your jaw drop?

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jenna: if you're having a tough morning maybe you should take a look at this. folks waking up to find their neighborhood covered in mud. courtesy of 45,000-gallons of water, a virtual river of mud forcing about 40 people from their homes today, in daily city, california, south of san francisco. you can see the cars just kind of stuck i the goo there and some folks trying to -- where do you start? i mean where do you start. rick: you can't clean that up. jenna: nobody knows where this all came from.

turns out there was a water main break in the hills above them and all the mud came rushing down. jenna: that can be really dangerous. rick: could be. jenna: just the cars stuck at this time. rick: well "happening now" the fda releasing a scathing report on the deadly men inch skwraoeut advertismeningitis outbreak that has killed 19 across the straight. >> reporter: fda inspectors say they found problems with ameridose, another specialty pharmacy in massachusetts that was phonedded by some of the same people that created the new england compounding center. they noted cracked and corroded walls, and even a bird near where sterile products are. gloves are not properly sterilized. the company's products lacked

appropriate effectiveness. they said the company failed to document potentially serious side affects where in one case where a person received pain medication seemed oversee dated and unresponsive. the company responded in a written statement saying quote, while ameridose's history shows clearly we have not had any instance of contaminated products over the past six years which is 70 million units of product we are committed to addressing all observations in order to enhance our existing systems. company officials point out that ameridose is a separate operation with separate management from the new england compounding center, the pharmacy indicated in the fungal meningitis out break. it was founded by the same pair of brothers in law that created necc and one of those founders, barry caden is scheduled to testify before a congressional hearing tomorrow. rick: thanks so*efp.

jenna: school district across the country are struggling to find ways to save money. one school hockey league caused an uproar with its plan to put a show of patriotism on the shopping block. since super storm sandy thousands are calling shelters homes. what is being done to take care of those who have already lost so much. we will take you inside a shelter and introduce you to those who are helping. ou like w. and you learned something along the way. this is the age of knowing what you're made of. so, why let erectile dysfunction get in your way? talk to your doctor about viagra. 20 million men already have. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss

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rick: just in, no shortage of stories involving generals today. fox news confirming that secretary leon panetta has demoted general kip ward. he's been stripped of one of his stars. he will now retire as a three-star lieutenant general. he will have to repay the government more than $82,000. his demotion coming after the pentagon found that he used taxpayer money on lavish travel

expenses. jenna: a lot to keep your eye on today. a live shot of the the briefing room. this press briefing was scheduled for about 20 minutes ago to begin. and we are awaiting jay carney and really what does the white house say at this point about the petraeus scandal? this is the first press briefing that they are holding since the petraeus scandal has broken. once that briefing starts we will bring you there. rick: the tough economic times causing belt-tightening for a lot of people, but folks crying foul over a school hockey league's idea of saving money. patti ann brown with more on that. >> reporter: in western pennsylvania it is expensive to rent and ice r*eupb for a hockey game. one arena halted a high school game before the period ended because the time had expired. some blame the overly lengthy singing of the national anthem before that game. so the pennsylvania interscholastic hockey league has issued a directive banning

the national anthem from games. it applies to 183 high school squads in central and western pennsylvania. the league commissioner says it has to do with money not patriotism. >> the national anthem should not be played only because of the time constraints, okay. it's not that we're not patriotic, that is the tpurtis not the truth. ice is very, very hard to get. we are talking $300 an hour sometimes. >> i go back to the 1960s with high school hockey and we've always played the national anthem. i think that it's something that should be done, it's part of our history, and our country, and absolutely should be part of the game. >> reporter: well many parents and fans are outraged. some suggest a prerecorded minute and a half version for all games. the league is holding another meeting to discuss revoking the ban. until that happens the game in central and western pa will not

include the spar spangled banner. rick: maybe they can give them a little bit of a time c for however long it takes to sing the national anthem that does not get counted toward your rink time. jenna: i think that is a good idea. how fast can you sing it? we should do a time trial, maybe. rick: you want to try it? jenna: you don't want to hear me sing at all on live television or otherwise. thousands of sandy's victims are adapting to life in storm shelters. for some it's temporary as their home is repaired and electricity is restored. others who were hit particularly hard are digging in for a longer stay. one of the questions we are asking today is what is life like in the shelters, how are counselors taking care of people who need help. marc siegl is a member of our medical a team and he's checked this out. >> reporter: we actually went to a shelter in new jersey where people were staying in a high school and there was literally more than 200 people there, and they actually received all kinds of services from the red cross,

and we were able to keep people safe, they were able to keep people clean, they didn't have the medical problems that they might otherwise have had and they dealt with them psychologically. let's take a look and see what we saw there. as people are trying to get back to their lives is there a role for informal therapy here. >> absolutely. that is the mental health piece. we are here all day talking to people, sitting at the table, eating meals with them, finding out what is going on. >> reporter: how do you give them a sense of control back sth. >> you talk about what their life was like before, what they'll be returning to some of the good things. they've got their families. kids will be back in school. there will be a sense of normal see again. >> reporter: how about post-traumatic stress? how do you prevent that from happening after this. >> part of it is dealing with the crisis so it's not post-traumatic, talking about now, where our, what was happening, how did it feel? what was the damage. >> reporter: how do people make their kids feel safe. >> frame is in a bit of an

adventure, like an extended camping trip. >> reporter: close confines here, i'm war lead about the risk of disease. what about flus, measles, diarrhea, how do you keep that from happening. >> it's hard to keep it from happening. what we do is make sure that people have clean shower and bathroom facilities. we make sure that our food is served at correct temperatures. we use safe food handling techniques, and we also encourage our clients to stay hydrated. >> reporter: for victims who are animal owners there is a separate shelter for thei p theitheir pets. >> reporter: why did you bring your pet to the shelter. >> because he would have died. if they won't let me bring him i would have stayed and died with him. >> reporter: they send out a pack when they go home. they have first-aid kits. gloves, flashlights. everything you need if you return to your home if it's not

back in working order. we want to prevent medical and psychological problems going forward, better than we saw with katrina. jenna: good to have you checking things out and making sure the folks are okay. dr. siegel thank you so much. we'll be right back with more "happening now." [ male announcer ] this is anna, her long day teaching the perfect swing

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after the health care law. ♪ open enrollment ends dember 7th. so now's the time. visit care.gov or call 1-800-medicare. jenna: we said there arlot of twists and turns to today's news and it's a little heavy. the last couple of weeks have been a little heavy with news. rick: seriously, really. jenna: you feel it. that's why we have something nice and up lifting to share with everybody. rick: a couple of our colleagues at fox news channel becoming parents in the last 24 hours. we want to congratulate julie banderas and her husband who welcomed a brand-new baby girl. jenna: avery. a beautiful little girl. we are working to get the pictures for you guys. rick: adam housley who works out of our los angeles bureau become ago dad for the very first time he and his wife having a little boy. jenna: aiden. aiden and avery. rick: they'll be buddies forever. jenna: we wish them the best of